China stocks lead Asia higher; Takata drops over 3%

Asian stock markets rallied on Thursday on the back of strong U.S. data, with China's benchmark index leading the gains.

The Dow and S&P 500 closed at fresh record highs overnight after the Federal Reserve's Beige Book showed optimism about the economic outlook. Other strong data also boosted sentiment; the ISM services index leapt to a three-month high in November and the ADP report on private payrolls showed sector employment kept up its recent pace last month.

The European Central Bank holds its policy review later today, and while most economists don't expect any action, markets will be looking for indications that more stimulus could come early next year as the region's economic recovery falters.

"The prospect of a sovereign bond buying program is looking ever more likely. It probably won't begin tonight [Thursday] but the prospect will only increase sentiment towards European equities," said Evan Lucas, market strategist at IG.